Monolithic Power Systems (MPWR): Chris Rokos’s Top Pick for the EV and AI Revolution?

Wesley ParkMonday, Apr 21, 2025 7:43 pm ET
10min read

Chris Rokos, the billionaire founder of Rokos Capital Management, has a reputation for spotting explosive growth opportunities before they hit the mainstream. And right now, his portfolio is stacked with one name that’s quietly dominating the future of tech: Monolithic Power Systems (MPWR). Is this the stock to buy ahead of the EV and AI boom? Let’s dive in.

Why Rokos Loves MPWR

Rokos’ Q3 2024 portfolio revealed MPWR as his 13th-largest holding, valued at $70.7 million. That’s no accident. MPWR designs the critical semiconductor chips that power everything from electric vehicles (EVs) to AI data centers. With global spending on EVs and cloud infrastructure expected to skyrocket, Rokos is betting MPWR will be the unsung hero of this revolution.

The Financials Are Firing on All Cylinders

MPWR’s third-quarter 2024 results were a home run:
- Revenue hit $620.1 million, a 22% jump from the prior quarter and a 30.6% surge year-over-year.
- Analysts at Goldman Sachs and Rosenblatt see $200+ price targets by 2025, citing MPWR’s dominance in silicon carbide (SiC) tech for EVs.

The Playbook: How MPWR Will Stay Ahead

  1. EVs Are the Growth Engine
    MPWR’s chips are mission-critical for EVs, where they manage battery efficiency and power distribution. The company is targeting 15–20% market share in high-voltage power ICs by 2025, backed by partnerships with industry giants like TSMC.

  2. AI Infrastructure Gold Rush
    Data centers hungry for AI need MPWR’s power management systems to handle massive energy demands. Analysts at Jefferies note MPWR’s $180 price target hinges on this sector’s growth.

  3. SiC Tech: The Next Big Thing
    Silicon carbide chips are 10x more efficient than traditional silicon. MPWR’s SiC platform could boost its margins to 40–45% by 2025, according to Wolfe Research.

The Risks (And Why They’re Overblown)

  • Supply Chain Volatility: Competitors like Analog Devices are nipping at MPWR’s heels. But with a 38-hedge fund backer base, institutional confidence is sky-high.
  • Inventory Management: Needham downgraded MPWR to “Market Perform” in 2024 over near-term stockpiling risks. But MPWR’s Q1 2025 revenue guidance was hiked to $630–640 million, proving it’s navigating these hurdles.

The Bottom Line: Buy Now or Miss the Ride?

MPWR isn’t just a stock—it’s a bet on the future of energy and tech. With Rokos’s stamp of approval and bullish analyst targets averaging $200, this is a name to watch.

The math is clear:
- Revenue growth: 20–25% annually through 2025.
- Margin expansion: 40–45% EBITDA margins by year-end.
- Market opportunity: A $100+ billion addressable market in EVs and AI by 2025.

Final Verdict: MPWR isn’t just a “best stock”—it’s a once-in-a-decade play on two unstoppable trends. If you’re in for the long haul, this is a buy. But be warned: With 38 hedge funds already onboard, don’t wait too long. The train’s leaving the station.

Ready to act?
- Buy MPWR if: You believe in EV adoption, AI infrastructure, and semiconductor innovation.
- Avoid MPWR if: You’re a short-term trader (this is a multi-year story).

The future of power is here—and MPWR’s CEO, Chris Rokos, is driving it.

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